NNIP offers European ESG infrastructure debt fund

Dutch fund group claims there is rising demand for investments in “real assets” that meet sustainable criteria

Dutch asset manager NN Investment Partners (NNIP) has launched the European Sustainable Infrastructure Debt fund.

The move is to meet what it claims is growing investor demand for infrastructure debt investments with “robust and predictable cash flows generated from assets that contribute to a more sustainable future”, the group said.

NNIP said there was growing demand for investments in “real assets”.

“Infrastructure debt is widely seen by many investors as being particularly attractive as it offers compelling risk-adjusted returns and at the same time contributes to providing essential public assets and services that typically provide significant social, environmental and economic benefits,” the group said in a statement.

NN Investment Partners made its first infrastructure debt investments in 1992.

The Fund aims to build a diversified portfolio of investment grade quality infrastructure debt across Europe in five core sectors, including social infrastructure, transportation, energy, utilities and digital infrastructure.

Traditionally, the low correlation of infrastructure assets to economic cycles has attracted long-term investors seeking to diversify their portfolios, match their liabilities and earn attractive returns.

Sustainable infrastructure can help both governments and investors to meet their carbon reduction targets, which are essential for moving to a low carbon economy, the group added.

Alistair Perkins, (pictured) head of infrastructure debt at NN Investment Partners, said: “We are convinced that by carefully selecting sustainable investments, we can build a future-proof portfolio that enhances value for our investors while demonstrating a tangible contribution to a more sustainable economy and prosperous society”.

The Fund has a target annual gross return of 3%-4% and a duration of 12 to 15 years.

NN (L) European Sustainable Infrastructure Debt fund is a sub-fund of NN (L) Alternative Credit (Sicav-Sif), established in Luxembourg.

– This article first appeared on ESG Clarity‘s sister site, Expert Investor.